Interest Rate Volatility

The survey of global fund managers with $562 billion in asset under management found 82% expect the first rate cut by the Federal Reserve in the second half

All 56 economists in the March 15-22 Reuters poll expected the RBI to hold the repo rate at 6.50% at the conclusion of its April 3-5 meeting

'Central banks are looking forward to a victory lap as inflation tracks back to target with only a modest blow to growth'

The waters are rising for firms whose earnings are not enough to repay debt

Interest rate is likely to remain high for the moment, Reserve Bank Governor Shaktikanta Das said, stressing the central bank will remain extra vigilant and keep "Arjun's eye" to ensure a sustained decline in inflation. The lending rates are ruling high after the RBI cumulatively hiked the key policy rate (repo) by 250 basis points since May 2022 in a bid to tame inflation which touched a high of 7.44 per cent this July. The consumer price index (CPI) based retail inflation is now declining and fell to 5 per cent in September. The government has mandated the central bank to ensure inflation remains at 4 per cent with a margin of 2 per cent on the either side. "Interest rate will remain high. How long they will remain high, I think only time and the way the world is evolving will tell," the governor said in response to a query at Kautilya Economic Conclave 2023. On the sidelines of the Conclave, Das said the RBI remains very focused on the inflation dynamics. "We are extra vigilant

Currently, a floating-rate loan appears a better bet than a fixed-rate peer

Analysts are predicting that the nominal GDP growth rate could be negative in the present financial year, but that doesn't mean that the currency in circulation would fall

The gap between lending rates and RBI's repo rate has reached levels only seen in crises

Longer duration FMPs can give up to annualised 7.7 per cent returns